Which of the Following Describes the Pseudocertainty Effect

question 7

Multiple Choice

Which of the following describes the pseudocertainty effect?

• A)People are more willing to pay to reduce their risk from 10% down to zero than they are to reduce their risk from 50% down to 40%.
• B)People are more willing to pay for a warranty plan that completely covers 30% of the possible problems rather than a plan that covers all problems with 30% probability.
• C)Rather than being offered a complete reduction of risk on certain problems and no reduction on others, you are offered a reduced risk on a variety of problems.
• D)All of the above.

---

Definitions:

Status

The relative social, professional, or other standing of someone or something, often compared to others within a given context.

Conformity

The behavior of aligning one's beliefs, attitudes, and actions with those of a group or society's standards and norms.

Groups

Groups consist of two or more people who interact and identify with one another, sharing a common purpose or goal.

Status Acceptance

refers to the act of acknowledging and embracing one's position or rank within a social hierarchy or group.